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RBI Imposes Rs 30 Lakh Penalty On MUFG Bank

RBI has imposed penalties on MUFG Bank for deficiencies in regulatory compliance. MUFG Bank was earlier known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Mumbai, Dec 24 (PTI) The Reserve Bank of India on Friday said it has imposed a penalty of Rs 30 lakh on MUFG Bank Ltd for non-compliance with the directions issued by it on “Loans and Advances -- Statutory and Other Restrictions”.

The central bank has also imposed penalties on two cooperative banks for deficiencies in regulatory compliance.

MUFG Bank was earlier known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.

The RBI said the statutory inspection for supervisory evaluation of MUFG Bank, with reference to its financial position as of March 31, 2019, revealed, inter alia, non-compliance with the direction to the extent that the bank had sanctioned loans and advances to companies whose board of directors included person(s) who were director(s) on boards of other banks, without such sanctions being accorded at the level of its Management Committee. 

A notice was issued to the bank. 

"After considering the bank's reply to the notice, oral submissions made during the personal hearing and additional submissions made by the bank, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI direction was substantiated and warranted imposition of monetary penalty," the central bank said. 

In another statement, the RBI said a penalty of Rs 2 lakh has been imposed on Chiplun Urban Co-operative Bank Ltd, Ratnagiri, for not adhering to the ceiling on advances to nominal members in certain cases.

A penalty of Rs 1 lakh has also been imposed on Dattatraya Maharaj Kalambe Jaoli Sahakari Bank Ltd, Mumbai, for almost similar regulatory deficiency as in the case of Ratnagiri bank. 

In all three cases, the RBI said penalties are based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by them with their customers. PTI NKD  BAL

 

 

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